19/04/2021 - 12:00

Vimy completes $18m placement

19/04/2021 - 12:00

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Vimy Resources has become the fourth Perth-based uranium company to undertake a major capital raising this year.

Vimy completes $18m placement
Vimy is raising $18.5 million from a placement and share purchase plan. Photo: Vimy Resources

Vimy Resources has become the fourth Perth-based uranium company to undertake a major capital raising this year.

Vimy has completed an $18.5 million placement to fund continuing works at its Mulga Rock and Alligator River uranium projects.

This comes after Boss Energy, Paladin Energy and Deep Yellow raised a total of $319 million to support uranium projects in Africa and South Australia.

“Global uranium equities have surged over 300 per cent since late October 2020, with Vimy’s share price having tripled,” Vimy managing director Mike Young said.

“That growing positive sentiment for nuclear clean energy has been the catalyst for this growth.”  

In the US, the Biden administration’s support of nuclear power as a clean energy option has boosted uranium following 10 years of market weakness after the Fukushima disaster shook investors’ taste for the resource.

Both new and existing domestic and international investors picked up the shares, and Vimy plans to raise a further $3 million via a share purchase plan.

Mr Young welcomed new shareholders, calling the company the most leveraged uranium play in the market.

“Importantly, a strong balance sheet allows Vimy to approach the coming uranium contracting cycle in a much more strategic fashion,” he said.  

Canaccord Genuity and Morgans Corporate completed the placement, which Vimy described as well supported.

The company issued around 168 million new fully paid ordinary shares at 11 cents each. The price represented an 18.5 per cent discount to the company’s last closing price of 13.5 cents.

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